Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Chapter 15 Processing the export order

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Topics covered in this chapter Contract of affreightment – terms of delivery – Inco terms 2000 Factors determining choice and description of inco terms Receipt of export order Processing the export order Presentation of documents to the bank – check list Computerised export department and software

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Introduction This chapter examines a key element in international trade – the task of processing the export order from its placement to its execution. It is often a computer driven export/logistics office. A particular area on which to focus by the international entrepreneur to fully understand the range – 13 – of the inco terms is available, and the merits of each and the situation in which each is best adopted in the export contract.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Contract of affreightment – terms of delivery – inco terms 2000 The basis of a price quotation depends on the correct interpretation of the delivery trade terms which is examined closely in this chapter. Study figure 15.1 which provides an analysis of each of the thirteen terms, and note the seller and buyer responsibilities key points summarized on page 399. Shippers are encouraged to obtain from the local chamber of commerce ICC inco terms booklet no 560.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Factors determining choice and description of inco terms 2000 Essential to understand the six key factors determining the choice of inco terms and also the salient features A very comprehensive description is given in the text. Focus particularly on the long established FOB, CFR, CIF and EXW and additionally on the growing popularity of the combined transport inco terms identified in the text and increasingly used in logistics transits.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Receipt of export order Six areas are examined which require special attention on receipt of the export order together with the nine check points listed. A further key factor key factor is the eleven areas to examine prior to order acceptance. A strategic focus must be followed reflecting the companies export policy. Processing the export consignment A comprehensive order processing sequence embracing 37 stages has been examined in depth. Important to understand each stage and why it arises.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Presentation of documents to the bank – check list An in depth analysis which must be understood to lessen payment problems. Note the three check lists – documents preparation – 21, sea transport consignment – 10 and export handling letters of credit – 16. Comprehend the twelve reasons for delays in delivery or dispatch. Obtain ICC – UCP publication no 500 or UCP no 600[2007] Computerised export department Most export/logistic departments are computerised – note the nineteen benefits listed. Study closely the comprehensive software case study of Exportmaster System Ltd and note figures 15.3 to Visit their website.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Key points Ensure you understand the following: Contract of affreigtment – terms of delivery – inco terms 2000 – Important to fully understand. Factors determining choice and description of inco terms 2000 – a key area to comprehend in order to devise an effective strategy on a company/product/country basis. Receipt of export order – essential to focus on each area to devise an efficient and cost effective logistic supply chain management system.

Use with Export Practice & Management Fifth Edition by Alan Branch ISBN 1–84480–081–4 © 2006 Alan Branch Processing the export consignment – again comprehend each element of the processing. Presentation of documents to the bank – check list – Particularly important to focus on areas resulting in payment delay and measure to remedy them. Computerised export department – especially cost effective area examined and extensive range of software.